Chicago Electric Car Tax Credit

Take note that this tax credit will phase out.

Chicago electric car tax credit.

Nearly every type of electric car qualifies for this tax credit. Internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks. Electric car tax credits are available if they qualify. What are plug in electric vehicles.

The federal incentive is only worth 7 500 to someone whose tax bill at the end of the year is 7 500 or more. The primary federal tax credit you should be looking at is the qualified plug in electric drive motor vehicle tax credit. Plug in electric drive vehicle credit irc 30d. The credit amount will vary based on the capacity of the battery used to power the vehicle.

Was the quirky 2012 mitsubishi i miev it s long gone now leaving the 2020 mitsubishi outlander phev as the only plug in car in the company s lineup. How does an electric vehicle tax credit work. It s worth 7 500 in tax deductions. Plug in electric vehicles pevs are motor vehicles that are powered either entirely or partially by rechargeable batteries.

For vehicles acquired after december 31 2009 the credit is equal to 2 500 plus for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity 417 plus an additional 417 for each kilowatt hour of. Let s say you buy a hyundai kona ev or. You must have purchased the vehicle in 2012 or 2013 and begun using it in the year in which you claim the credit. Once they sell 200 000.

All electric and plug in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to 7 500. Federal incentives for electric vehicles. Welcome to the city of chicago s one stop shop for information on plug in electric vehicles. Illinois vehicle registration fees for electric cars is 251 per registration year.

With only one niche vehicle in a tiny model lineup it could be decades before mitsubishi approaches the. One of the first electric vehicles sold in the u s. Registration fees for il electric vehicles. The honda clarity fuel cell does not qualify for the rebate.

Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500. The qualified plug in electric drive motor vehicle tax credit is the main federal incentive program for electric cars available in the united states. Size and battery capacity are the primary influencing factors. Under this program the purchase of a new electric vehicle is eligibe for a tax credit worth 7 500 as long as it meets the following criteria.

These batteries are recharged when connected to the electric grid meaning you can charge. The credit is 10 of the purchase price of the vehicle with a maximum credit of 2 500. The value of the irs tax credit ranges from 2 500 to 7 500 depending on the electric vehicle in question.